Benefits of Personalization in B2B Marketing

Are you unsure about the benefits of B2B Personalization for your bottom line? The example below shows exactly how a few web changes in favor of personalization can increase dramatically increase revenue.

Personalization impact on Lead Value

In the case above, we’ve got an enterprise B2B SAS business with two defined two distinct groups: non-target accounts and target accounts.

Obviously, in an official account based marketing scenario you’re going to have multiple tiers, but for this example, we will use two.

What we’re assuming is that there’s a customer lifetime value of around $200,000 for your non-target accounts and $2 million for your target accounts. That’s roughly in line with enterprise SAAS businesses.

Let’s assume that both of those cohorts have a lead-to-close conversion rate of 1%.

That gives you a lead value on an LTV basis of $2,000 for your non-target accounts, and $20,000 for your target accounts. There is an obvious and significant difference there in lead value. Your target accounts are always going to represent a much higher lead value than non-target accounts.

If you’re not really focused on personalizing the experience of target accounts, you can assume that we have a higher percentage of leads that come in that are from those non-target accounts; let’s call that 80%, which means that the other 20% are from your target accounts.

From there, you can arrive at a weighted lead value, again at an LTV basis, around $5,600 for every lead that comes in.

Now if you are able to personalize the website experience for your most important accounts, you should be able to alter that mix and maybe even get it to 50/50, where 50% of the leads coming in are from your target accounts, and 50% are from your non-target accounts.

That’s obviously going to have a dramatic impact on the weighted lead value. As you can see here that’s $11,000, significantly more than when you’re not doing account based marketing and personalization.

Personalization impact on your Website

So what does that actually mean for your website? Well, again let’s assume some numbers here.

200,000 monthly unique visitors and on average.

1,000 of those are converting into leads

This gives you a conversion rate of half a percent.

As a marketing organization, you think, “Well we can do better than that. We want to invest in conversion rate improvements and we’re going to spend $200,000 to try and increase that conversion rate.” Let’s say with that investment, you’re successful.

You’ve invested in the team, in the tools, the technology to get you there, and as a result of that program, you see a 10% improvement in conversion rates.

Results of Not Personalizing

What does that actually mean for your business? In the scenario where you’re not doing personalization, you do see a pretty significant increase in new LTV that you generate. On a present value basis with some assumptions on a 3-year subscription length, you will add about $490,000 to the business. The ROI on that effort is 145%, which is great.

Results of Personalizing

In the case where you’re actually personalizing for target accounts, you can actually drive significantly more LTV into the business; almost well over 900,000 in this model with an ROI of 380%.

Investing in ABM increases ROI by 263%!

That’s because fundamentally you’re taking advantage of the fact that you’re able to drive more leads from those target accounts because you’re personalizing for them and you’re driving deeper engagement.

As you can see, that has more than double of your ROI that you can get through personalization. This is really the reason why companies that have significantly more potential in certain accounts, should be creating more personalized experiences on the website.